Employment Linked Incentive Scheme launches August 1
Starting August 1, 2025, the Indian government is rolling out the Employment Linked Incentive (ELI) Scheme—a massive push to create over 3.5 crore formal jobs by mid-2027.
With nearly ₹1 lakh crore set aside, the focus is on boosting employment, skill-building, and social security, especially in manufacturing.
What are the benefits under this scheme?
If you're a first-time employee earning under ₹1 lakh a month and registered with EPFO, you could get up to ₹15,000 extra as an incentive—paid out in two installments: the first half after six months of continuous service, and the second half after sticking around for a year and completing a financial literacy program.
Employers aren't left out either; they can earn up to ₹3,000 per month for every new hire who stays at least six months.
Manufacturing companies get these benefits for 4 years
Manufacturing companies get these benefits for four years (other sectors get two), but there's a catch: firms need to hire at least two or five new people depending on their size.
It's all about rewarding real job creation while giving young workers and employers a reason to grow together.